Domain names disputes arise for a number of reasons. The uniqueness of each domain name leads to the potential for conflicts with businesses and individuals with similar names. In addition to these relatively accidental conflicts, some parties deliberately register names to hijack businesses, extort money from or disrupt the operations of established organisations. Such an action is known as cyberpiracy, cybersquatting or typosquatting. This chapter analyses the nature of domain name disputes and remedies using national courts. The next chapter deals with the application of the Uniform Dispute Resolution Policy (UDRP) of ICANN and selected national domain name administrators, and with selected dispute resolution policies.

Cybersquatting

Speculating on the resale value of internet domains names has become a profitable pastime for internet devotees. For example, loans.com sold for US$3 million, cinema.com for US$800,000 and HappyBirthday.com for US$55,000. These transactions are part of commerce and offend no legal precepts. ICANN and most National Domain Administrators accept the principle of first come first served. Also, many country code domain administrators prohibit the selling of domain names; those who breach such a rule risk forfeiting the domain name. However, a person who registers a domain name identical to a well-known or famous name for the purpose of subsequently demanding an exorbitant fee for ‘transfer’ (that is, sale) is referred to as a cybersquatter. The value to the cybersquatter lies in the fact that every domain name is unique.